Our risk appetite defines tolerance levels for various risks. This is the foundation for our risk management culture and our risk management framework.

Our risk management framework includes:

•

CIBC, SBU, functional group-level and regional risk appetite statements;

•

Risk frameworks, policies, procedures and limits to align activities with our risk appetite;

•

Regular risk reports to identify and communicate risk levels;

•

An independent control framework to identify and test the design and operating effectiveness of our key controls;

•

Stress testing to consider the potential impact of changes in the business environment on capital, liquidity and earnings;

•

Proactive consideration of risk mitigation options in order to optimize results; and

•

Oversight through our risk-focused committees and governance structure.

Managing risk is a shared responsibility at CIBC. Business units and risk management professionals work in collaboration to ensure that business strategies and activities are consistent with our risk appetite. CIBC’s approach to enterprise-wide risk management aligns with the three lines of defence model:

(i)

As the first line of defence, CIBC’s Management, in SBUs and functional groups, own the risks and are accountable and responsible for identifying and assessing risks inherent in its activities in accordance with the CIBC risk appetite. In addition, Management establishes and maintains controls to mitigate such risks and support operational resilience. Management may include Governance Groups within the business to facilitate the Control Framework, Operational Risk Management and Operational Resilience Framework and other risk-related processes. A Governance Group refers to a group within Business Unit Management (first line of defence) whose focus is to support Management in meeting their governance, risk and control activities. A Governance Group is considered the first line of defence, in conjunction with Business Unit Management. Control Groups, which typically reside within centralized functions, provide subject matter expertise to Business Unit Management and/or implement/maintain enterprise-wide control programs and activities. While Control Groups collaborate with Business Unit Management in identifying and managing risk, they also challenge risk decisions and risk mitigation strategies.

(ii)

The second line of defence is independent from the first line of defence and provides an enterprise-wide view of specific risk types, guidance and effective challenge to risk and control activities. Risk Management is the primary second line of defence. Risk Management may leverage subject matter expertise of other groups (e.g., third parties or Control Groups) to inform their independent assessments, as appropriate.

(iii)

As the third line of defence, CIBC’s Internal Audit is responsible for providing reasonable assurance to senior management and the Audit Committee of the Board on the effectiveness of CIBC’s governance practices, risk management processes, and Internal Control as a part of its risk-based audit plan and in accordance with its mandate as described in the Internal Audit Charter.

A strong risk culture and communication between the three lines of defence are important characteristics of effective risk management.

Board of Directors (the Board):

The Board oversees the enterprise-wide risk management program through approval of our risk appetite, Control Framework and supporting risk management policies and limits. The Board accomplishes its mandate through its Audit, Risk Management, Management Resources and Compensation, Corporate Governance, and Technology committees, described below.

Audit Committee (AC):

The Audit Committee reviews the overall design and operating effectiveness of internal controls and the control environment, including internal controls over financial reporting. The Audit Committee also has oversight of the underlying processes and controls of the ESG disclosures in our Annual Report, Sustainability Report, and other material ESG disclosure documents.

Risk Management Committee (RMC):

This committee assists the Board in fulfilling its responsibilities for defining CIBC’s risk appetite and overseeing CIBC’s risk profile and performance against the defined risk appetite. This includes oversight of key frameworks, policies and risk limits related to the identification, measurement and monitoring of CIBC’s principal business risks.

Management Resources and Compensation Committee (MRCC):

This committee is responsible for assisting the Board in its global oversight of CIBC’s human capital strategy, including talent and total rewards, and the alignment with CIBC’s strategy, risk appetite and controls.

Corporate Governance Committee (CGC):

This committee is responsible for assisting the Board in fulfilling its corporate governance oversight responsibilities and oversight of the ESG strategy.

Technology Committee (TC):

This committee is responsible for assisting the Board in fulfilling its responsibilities for overseeing CIBC’s technology strategy and ensuring it allows for CIBC’s strategic plan and priorities to be carried out.

The Group Executive Leadership Team (Group ELT):

The Group ELT, led by the CEO and including selected executives reporting directly to the CEO, is responsible for setting business strategy and for monitoring, evaluating and managing risks across CIBC. The Group ELT is supported by the following management governance committees:

•

Global Asset Liability Committee (GALCO):

This committee, which comprises members from the Group ELT and senior Treasury, Risk Management and lines of business executives, provides oversight regarding capital management, funding and liquidity management, and asset/liability management (ALM). It also provides strategic direction regarding structural interest rate risk (SIRR) and structural foreign exchange risk postures, approval of funds transfer pricing policies/parameters and approval of wholesale funding plans.

•

Global Risk Committee (GRC):

This committee, which comprises selected members of the Group ELT and senior leaders from the lines of business, Risk Management and other functional groups, provides a forum for discussion and oversight of risk appetite, risk profile and risk mitigation strategies. Key activities include reviewing and providing input regarding CIBC’s risk appetite statements; monitoring risk profile against risk appetite; reviewing and evaluating business activities in the context of risk appetite; and identifying, reviewing, and advising on current and emerging risk issues and associated mitigation plans.

Policies

To control credit risk, prudent credit risk management principles are used as a base to establish policies, standards and guidelines that govern credit activities as outlined by the credit risk management policy.

The credit risk management policy supplements CIBC’s risk management framework and risk appetite framework, and together with CIBC’s portfolio concentration limits for credit exposures, CIBC’s common risk/concentration risk limits for credit exposures, and other supporting credit risk policies, standards and procedures, assists CIBC in achieving its desired risk profile by providing an effective foundation for the management of credit risk.

Credit risk limits

The RMC approves Board limits, and exposures above Board limits require reporting to, or approval of, the RMC. Management limits are approved by the CRO. Usage is monitored to ensure risks are within allocated management and Board limits. Exposures above management limits require the approval of the CRO. Business lines may also impose lower limits to reflect the nature of their exposures and target markets. This tiering of limits provides for an appropriate hierarchy of decision making and reporting between management and the RMC. Credit approval authority flows from the Board and is further cascaded to officers in writing. The Board’s Investment and Lending Authority Resolution sets thresholds above which credit exposures require reporting to, or approval of, the RMC, ensuring an increasing level of oversight for credit exposures of higher risk. CIBC maintains country limits to control exposures within countries outside of Canada and the U.S.

Credit concentration limits

At a bank-wide level, credit exposures are managed to promote alignment to our risk appetite statement, to maintain the target business mix and to ensure that there is no undue concentration of risk. We set limits to control borrower concentrations by risk-rating band for large exposures (i.e., risk-rated credits). Direct loan sales, credit derivative hedges, or structured transactions may also be used to reduce concentrations. We also have a set of portfolio concentration limits in place to control exposures by country, industry, product and activity. Further, our policies require limits to be established as appropriate for new initiatives and implementation of strategies involving material levels of credit risk. Concentration limits represent the maximum exposure levels we wish to hold on our books. In the normal course, it is expected that exposures will be held at levels below the maximums. The credit concentration limits are reviewed and approved by the RMC at least annually.

Credit concentration limits are also applied to our retail lending portfolios to mitigate concentration risk. We not only have concentration limits applied to individual borrowers and geographic regions, but also to different types of credit facilities, such as unsecured credits. In addition, we limit the maximum insured mortgage exposure to private insurers in order to reduce counterparty risk.

Credit risk mitigation

We may mitigate credit risk by obtaining a pledge of collateral, which improves recoveries in the event of a default. Our credit risk management policies include verification of the collateral and its value and ensuring that we have legal certainty with respect to the assets pledged. Valuations are updated periodically depending on the nature of the collateral, legal environment, and the creditworthiness of the counterparty. The main types of collateral include: (i) cash or marketable securities for securities lending and repurchase transactions; (ii) cash or marketable securities taken as collateral in support of our OTC derivatives activity; (iii) charges over operating assets such as inventory, receivables and real estate properties for lending to small business and commercial borrowers; and (iv) mortgages over residential properties for retail lending.

In certain circumstances we may use third-party guarantees to mitigate risk. We also obtain insurance to reduce the risk in our real estate secured lending portfolios, the most material of which relates to the portion of our residential mortgage portfolio that is insured by CMHC, an agency of the Government of Canada.

We mitigate the trading credit risk of OTC derivatives, securities lending and repurchase transactions with counterparties by employing the International Swaps and Derivatives Association (ISDA) Master Agreement, as well as Credit Support Annexes (CSAs) or similar master and collateral agreements. See Note 12 to the consolidated financial statements for additional details on the risks related to the use of derivatives and how we manage these risks.

ISDA Master Agreements and similar master and collateral agreements, such as the Global Master Repurchase Agreement and Global Master Securities Lending Agreement, facilitate cross transaction payments, prescribe

close-out

netting processes, and define the counterparties’ contractual trading relationship. In addition, the agreements formalize

non-transaction-specific

terms. Master agreements serve to mitigate our credit risk by outlining default and termination events, which enable parties to close out of all outstanding transactions in the case of a negative credit event on either party’s side. The mechanism for calculating termination costs in the event of a

close-out

are outlined in the master agreement; this allows for the efficient calculation of a single net obligation of one party to another.

CSAs and other collateral agreements are often included in ISDA Master Agreements or similar master agreements governing securities lending and repurchase transactions. They mitigate CCR by providing for the exchange of collateral between parties when a party’s exposure to the other exceeds agreed upon thresholds, subject to a minimum transfer amount. CSAs and other collateral agreements that operate with master agreements also designate acceptable collateral types, and set out rules for

re-hypothecation

and interest calculation on collateral. Collateral types permitted under CSAs and other master agreements are set through our trading credit risk management documentation procedures. These procedures include requirements around collateral type concentrations.

Consistent with global initiatives to improve resilience in the financial system, we clear derivatives through CCPs where feasible. Credit derivatives may be used to reduce industry sector concentrations and single-name exposure.

Risk measurement

Exposures subject to IRB approaches

Under the IRB approaches, we are required to categorize exposures to credit risk into broad classes of assets with different underlying risk characteristics. This asset categorization may differ from the presentation in our consolidated financial statements. Under the IRB approaches, credit risk is measured using the following three key risk parameters

(1)

•

PD – the probability that the obligor will default within the next 12 months.

•

EAD – the estimate of the amount that will be drawn at the time of default.

•

LGD – the expected severity of loss as the result of the default, expressed as a percentage of the EAD.

Exposures under the IRB approaches can be further differentiated into two categories, AIRB and FIRB. For portfolios subject to the AIRB approach, PD, LGD and EAD are internal estimates. Certain portfolios are prescribed to use the FIRB approach, where LGD and EAD are regulatory defined parameters. Our credit risk exposures are divided into business and government and retail portfolios. Regulatory models used to measure credit risk exposure under the IRB approach are subject to CIBC’s model risk management process.

(1)

These parameters differ from those used in the calculation of ECL under IFRS 9. See the “Accounting and control matters” section for further details.

Business and government portfolios (excluding scored small business) – risk-rating method

The portfolios comprise exposures to corporate, sovereign, and bank obligors. Our adjudication process and criteria includes assigning an obligor rating that reflects our estimate of the financial strength of the borrower, and a facility rating or LGD rating that reflects the collateral amount and quality applicable to secured exposures, the seniority position of the claim, and the capital structure of the borrower for unsecured exposures.

The obligor rating takes into consideration our financial assessment of the obligor, the industry, and the economic environment of the region in which the obligor operates. Where a guarantee from a third-party exists, both the obligor and the guarantor will be assessed. While our obligor rating is determined independently of external ratings for the obligor, our risk-rating methodology includes a review of those external ratings.

CIBC employs a

20-point

master internal obligor default rating scale that broadly maps to external agencies’ ratings as presented in the table below.

CIBC

S&P

Moody’s

Grade

rating

equivalent

Investment grade

00–47

AAA to BBB-

Aaa to Baa3

Non-investment

grade

51–67

BB+ to B-

Ba1 to B3

Watch list

70–80

CCC+ to C

Caa1 to Ca

Default

We use quantitative modelling techniques to assist in the development of internal risk-rating systems. The risk-rating systems have been developed through analysis of internal and external credit risk data, supplemented with expert judgment. The risk ratings are used for portfolio management, risk limit setting, product pricing, and in the determination of regulatory and economic capital.

Our credit process is designed to ensure that we approve applications and extend credit only where we believe that our client has the ability to repay according to the agreed terms and conditions.

Our credit framework of policies and limits defines our appetite for exposure to any single name or group of related borrowers, which is a function of the internal risk rating. We generally extend new credit only to borrowers in the investment and

non-investment

grade categories noted above. Our credit policies are also defined to manage our exposure to concentration in borrowers in any particular industry or region.

In accordance with our process, each obligor is assigned an obligor default rating and the assigned rating is mapped to a PD estimate that represents a

long-run

average

one-year

default likelihood. For corporate obligors, PD estimates are calculated using joint maximum likelihood techniques based on our internal default rate history by rating category and longer dated external default rates as a proxy for the credit cycle to arrive at

long-run

average PD estimates. Estimates drawn from third-party statistical default prediction models are used to supplement the internal default data for some rating bands where internal data is sparse. For small and medium corporate enterprises, PD estimates are developed using only internal default history. For bank and sovereign obligors, PD estimates are derived from an analysis based on external default data sets and supplemented with internal data where possible. We examine several different estimation methodologies and compare results across the different techniques. In addition, we apply the same techniques and estimation methodologies to analogous corporate default data and compare the results for banks and sovereigns to the corporate estimates for each technique. A regulatory floor is applied to PD estimates for corporate and bank obligors.

Each facility is assigned an LGD rating and each assigned rating is mapped to an LGD estimate that considers economic downturn conditions. For corporate obligors subject to the AIRB approach, LGD estimates are primarily derived from internal historical recovery data. Time to resolution is typically one to two years for most corporate obligors, and one to four years in the real estate sector. LGD values are based on discounted post-default cash flows for resolved accounts and include material direct and indirect costs associated with collections. External data is used in some cases to supplement our analysis. Economic downturn periods are identified for each portfolio by examining the history of actual losses, default rates and LGD. For sovereign exposures, LGD estimates are primarily driven by expert judgment supplemented with external data and benchmarks where available. Appropriate adjustments are made to LGD estimates to account for various uncertainties associated with estimation techniques and data limitations, including adjustments for unresolved accounts. For obligors subjected to the FIRB approach, LGD is a regulatory prescribed calculation.

EAD is estimated based on the current exposure to the obligor together with possible future changes in that exposure. For obligors subject to the AIRB approach, internal EAD estimates are driven by factors such as the available undrawn credit commitment amount and the obligor default rating. EAD estimates are primarily based on internal historical loss data supplemented with comparable external data. Economic downturn periods are identified for each portfolio by examining the historical default rates and actual EAD factors. For obligors subjected to the FIRB approach, EAD is a regulatory prescribed calculation.

Appropriate adjustments are made to internal PD, LGD and EAD estimates to account for various uncertainties associated with estimation techniques and data limitations, including adjustments for unresolved accounts (for LGD).

Regulatory capital slotting approach is used for part of our uninsured Canadian commercial mortgage portfolio, which comprises

non-residential

mortgages and multi-family residential mortgages. These exposures are individually rated on our rating scale using a risk-rating methodology that considers the property’s key attributes, which include its

loan-to-value

(LTV) and debt service ratios, the quality of the property, and the financial strength of the owner/sponsor. All exposures are secured by a lien over the property. In addition, we have insured multi-family residential mortgages, which are not treated under the slotting approach, but are instead treated as sovereign exposures.

Retail portfolios

Retail portfolios are characterized by a large number of relatively small exposures. They comprise: real estate secured personal lending (residential mortgages and personal loans and lines secured by residential property); qualifying revolving retail exposures (credit cards, overdrafts and unsecured lines of credit); and other retail exposures (loans secured by

non-residential

assets, unsecured loans, and scored small business loans).

We use scoring models in the adjudication of new retail credit exposures, which are based on statistical methods of analyzing the unique characteristics of the borrower, to estimate future behaviour. In developing our models, we use internal historical information from previous borrowers, as well as information from external sources, such as credit bureaus. The use of credit scoring models allows for consistent assessment across borrowers. There are specific guidelines in place for each product, and our adjudication decision will take into account the characteristics of the borrower, any guarantors, and the quality and sufficiency of the collateral pledged (if any). The lending process will include documentation of, where appropriate, satisfactory identification, proof of income, independent appraisal of the collateral and registration of security.

Retail portfolios are managed as pools of homogeneous risk exposures, using external credit bureau scores and/or other behavioural assessments to group exposures according to similar credit risk profiles. These pools are established through statistical techniques. Characteristics used to group individual exposures vary by asset category; as a result, the number of pools, their size, and the statistical techniques applied to their management differ accordingly.

The following table maps the PD bands to various risk levels:


Risk level			PD bands
Exceptionally low			0.01%–0.20%
Very low			0.21%–0.50%
Low			0.51%–2.00%
Medium			2.01%–10.00%
High			10.01%–99.99%
Default			100%

For the purposes of the AIRB approach for retail portfolios, additional PD, LGD and EAD segmentation into homogeneous risk exposures is established through statistical techniques. The principal statistical estimation technique is decision trees benchmarked against alternative techniques such as regression and random forests.

Within real estate secured lending, we have two key parameter estimation models: mortgages and real estate secured personal lines of credit. Within qualifying revolving retail, we have three key parameter estimation models: credit cards, overdraft, and unsecured personal lines. A small percentage of credit cards, overdraft, and unsecured line accounts that do not satisfy the requirements for qualifying revolving retail are grouped into other retail parameter models. Within other retail, we have three key parameter models: margin lending, personal loans, and scored small business loans. Each parameter model pools accounts according to characteristics such as: delinquency, current credit bureau score, internal behaviour score, estimated current LTV ratio, account type, account age, utilization, transactor/revolver, outstanding balance, or authorized limit.

PD is estimated as the average default rate over an extended period based on internal historical data, generally for a

5-to-10-year

period, which is adjusted using internal historical data on default rates over a longer period or comparable external data that includes a period of stress. A regulatory floor is applied to our PD estimate for all retail exposures with the exception of insured mortgages and government-guaranteed loans. A higher regulatory floor is applied to qualifying revolving transactors.

LGD is estimated based on observed recovery rates over an extended period using internal historical data. In determining our LGD estimate, we exclude any accounts that have not had enough time since default for the substantial majority of expected recovery to occur. This recovery period is product-specific and is typically in the range of 1 to 3 years. Accounts that cure from default and return to good standing are considered to have zero loss. We simulate the loss rate in a significant downturn based on the relationship(s) between LGD and one or more of the following: PD; housing prices, cure rate, and recovery time; or observed LGD in periods with above-average loss rates. We apply appropriate adjustments to address various types of estimation uncertainty including sampling error and trending. A regulatory floor is applied to all real estate secured exposures with the exception of insured mortgages. Higher regulatory floors are applied to unsecured accounts.

EAD for revolving products is estimated as a percentage of the authorized credit limit based on the observed EAD rates over an extended period using historical data. We simulate the EAD rate in a significant downturn based on the relationship(s) between the EAD rate and PD and/or the observed EAD rate in periods with above-average EAD rates. For term loan products, EAD is set equal to the outstanding balance. A regulatory floor is applied to the percentage of the undrawn exposure that is included in EAD.

We apply appropriate adjustments to PD, LGD and EAD to address various types of estimation uncertainty including sampling error and trending.

Back-testing

We monitor the three key risk parameters – PD, EAD and LGD – on a quarterly basis for our business and government portfolios and on a monthly basis for our retail portfolios. Every quarter, the back-testing results are reported to OSFI and are presented to the business and Risk Management senior management for review and challenge. For each parameter, we identify any portfolios whose realized values are significantly above or significantly below expectations and then test to see if this deviation is explainable by changes in the economy. If the results indicate that a parameter model may be losing its predictive power, we prioritize that model for review and update.

Stress testing

As part of our regular credit portfolio management process, we conduct stress testing and scenario analyses on our portfolio to quantitatively assess the impact of various historical, as well as hypothetical, stressed conditions, versus limits determined in accordance with our risk appetite. Scenarios are selected to test our exposures to specific industries (e.g., oil and gas and real estate), products (e.g., mortgages and cards), or geographic regions (e.g., Europe and the Caribbean). Results from stress testing are a key input into management decision making, including the determination of limits and strategies for managing our credit exposure. See the “Real estate secured personal lending” section for further discussion on our residential mortgage portfolio stress testing.

Exposure to credit risk

The portfolios are categorized based upon how we manage the business and the associated risks. Gross credit exposure amounts presented in the table below represent our estimate of EAD, which is net of derivative master netting agreements and CVA but is before allowance for credit losses or credit risk mitigation for IRB approaches. Gross credit exposure amounts relating to our business and government portfolios are reduced for collateral held for repo-style transactions, which reflects the EAD value of such collateral.

Non-trading

equity exposures are not included in the table below as they have been deemed immaterial under the OSFI guidelines, and hence are subject to 100% risk-weighting.


$ millions, as at October 31					2025						2024
	IRB approach		Standardized approach		Total		IRB approach		Standardized approach		Total
Business and government portfolios
Corporate
Drawn	$	206,412	$	7,218	$	213,630	$	186,995	$	6,717	$	193,712
Undrawn commitments		58,702		969		59,671		54,122		1,005		55,127
Repo-style transactions		335,746		–		335,746		308,047		1		308,048
Other off-balance sheet		14,659		381		15,040		13,307		331		13,638
OTC derivatives		13,581		136		13,717		10,970		126		11,096
		629,100		8,704		637,804		573,441		8,180		581,621
Sovereign
Drawn		188,329		8,728		197,057		187,765		7,802		195,567
Undrawn commitments		8,386		297		8,683		8,101		178		8,279
Repo-style transactions		55,556		–		55,556		54,661		–		54,661
Other off-balance sheet		1,906		143		2,049		1,595		156		1,751
OTC derivatives		2,416		–		2,416		2,545		–		2,545
		256,593		9,168		265,761		254,667		8,136		262,803
Banks
Drawn		11,664		1,066		12,730		12,076		1,298		13,374
Undrawn commitments		841		–		841		555		–		555
Repo-style transactions		71,881		–		71,881		45,493		–		45,493
Other off-balance sheet		3,529		–		3,529		2,176		–		2,176
OTC derivatives		6,817		–		6,817		5,291		–		5,291
		94,732		1,066		95,798		65,591		1,298		66,889
Gross business and government portfolios		980,425		18,938		999,363		893,699		17,614		911,313
Less: collateral held for repo-style transactions		437,601		–		437,601		388,767		–		388,767
Net business and government portfolios		542,824		18,938		561,762		504,932		17,614		522,546
Retail portfolios
Real estate secured personal lending
Drawn		295,526		3,087		298,613		290,545		3,028		293,573
Undrawn commitments		37,986		–		37,986		36,393		2		36,395
		333,512		3,087		336,599		326,938		3,030		329,968
Qualifying revolving retail
Drawn		24,157		2,870		27,027		22,894		3,119		26,013
Undrawn commitments		70,592		4,226		74,818		63,866		3,979		67,845
Other off-balance sheet		451		120		571		411		114		525
		95,200		7,216		102,416		87,171		7,212		94,383
Other retail
Drawn		15,857		873		16,730		15,199		829		16,028
Undrawn commitments		3,767		–		3,767		3,430		1		3,431
Other off-balance sheet		7		–		7		6		–		6
		19,631		873		20,504		18,635		830		19,465
Small and medium enterprises (SME) retail
Drawn		2,887		–		2,887		3,183		–		3,183
Undrawn commitments		1,143		–		1,143		1,217		–		1,217
Other off-balance sheet		25		–		25		27		–		27
		4,055		–		4,055		4,427		–		4,427
Total retail portfolios		452,398		11,176		463,574		437,171		11,072		448,243
Securitization exposures (1)		40,180		30,105		70,285		30,901		21,251		52,152
Gross credit exposure (2)		1,473,003		60,219		1,533,222		1,361,771		49,937		1,411,708
Less: collateral held for repo-style transactions		437,601		–		437,601		388,767		–		388,767
Net credit exposure (2)	$	1,035,402	$	60,219	$	1,095,621	$	973,004	$	49,937	$	1,022,941

(1)

OSFI guidelines define a hierarchy of approaches for treating securitization exposures in our banking book. Depending on the underlying characteristics, exposures are eligible for either the SA or the IRB approach. The

SEC-ERBA,

which is inclusive of

SEC-IAA,

includes exposures that qualify for the IRB approach, as well as exposures under the SA.

(2)

Excludes exposures arising from derivative and repo-style transactions which are cleared through qualified central counterparties (QCCPs) as well as credit risk exposures arising from other assets that are subject to the credit risk framework, including other balance sheet assets which are risk-weighted at 100%, significant investments in the capital of

non-financial

institutions which are risk-weighted at 1250%, settlement risk, and amounts below the thresholds for deduction which are risk-weighted at 250%.

Non-trading

equity exposures are also excluded and are subject to a range of risk-weightings dependent on the nature of the security.

Trading credit exposures

We have trading credit exposure (also called counterparty credit exposure) that arises from our OTC derivatives and our repo-style transactions. The nature of our derivatives exposure and how it is mitigated is further explained in Note 12 to the consolidated financial statements. Our repo-style transactions consist of our securities bought or sold under repurchase agreements, and our securities borrowing and lending activity.

The PD of our counterparties is estimated using models consistent with the models used for our direct lending activity, or as prescribed. Due to the fluctuations in the market values of interest rates, exchange rates, and equity and commodity prices, counterparty credit exposure cannot be quantified with certainty at the inception of the trade. Counterparty credit exposure is estimated using the current fair value of the exposure, plus an estimate of the maximum potential future exposure due to changes in the fair value. Credit risk associated with these counterparties is managed within the same process as our lending business, and for the purposes of credit adjudication, the exposure is aggregated with any exposure arising from our lending business. The majority of our counterparty credit exposure benefits from the credit risk mitigation techniques discussed above, including daily

re-margining,

and posting of collateral.

We are also exposed to

wrong-way

risk. Specific

wrong-way

risk arises when CIBC receives financial collateral issued (or an underlying reference obligation of a transaction is issued) by the counterparty itself, or by a related entity that would be considered to be part of the same common risk group. General

wrong-way

risk arises when the exposure and/or collateral pledged to CIBC is highly correlated to that of the counterparty. Exposure to

wrong-way

risk with derivative counterparties is monitored by CMRM. Where we may be exposed to

wrong-way

risk, our adjudication procedures subject those transactions to a more rigorous approval process. The exposure may be hedged with other derivatives to further mitigate the risk that can arise from these transactions.

Our trading credit exposure also includes CVA risk. We establish a CVA for expected future credit losses from each of our derivative counterparties. The expected future credit loss is a function of our estimates of the PD, the estimated loss in the event of default, and other factors such as risk mitigants. CVA exposure is identified and measured in trading systems and monitored and controlled in our risk systems, including setting limits on risk measures and sensitivities. The Trading Credit Risk Measurement Standards governs the eligibility of credit default swaps for the purposes of hedging both CVA and counterparty credit risk. CVA risk can also be hedged using derivatives of the underlying credit exposures risk factor (e.g. foreign exchange options), and all CVA hedges are monitored for effectiveness on a regular basis, utilizing scenario and profit and loss analysis.

Senior management in CMRM reviews CVA exposures including the capital consumed from the underlying CVA exposures and its hedges on a regular basis. Senior management also approves CVA capital as part of the overall control framework in place, along with the approval of limits on the CVA sensitivities. CVA risk is evaluated independently from the trading desks utilizing market data and parameters that are reviewed and controlled by Risk Management.

Concentration of exposures

Concentration of credit risk exists when a number of obligors are engaged in similar activities, or operate in the same geographic areas or industry sectors, and have similar economic characteristics so that their ability to meet contractual obligations is similarly affected by changes in economic, political, or other conditions.

Geographic distribution

(1)(2)

The following table provides a geographic distribution of our business and government exposures under the IRB approach, net of collateral held for repo-style transactions.


$ millions, as at October 31, 2025	Canada		U.S.		Europe		Other		Total
Drawn	$	190,240	$	180,725	$	21,839	$	13,601	$	406,405
Undrawn commitments		36,642		23,140		5,683		2,464		67,929
Repo-style transactions		6,161		9,069		4,935		5,417		25,582
Other off-balance sheet		9,876		7,663		1,545		1,010		20,094
OTC derivatives		13,406		4,620		2,808		1,980		22,814
Total	$	256,325	$	225,217	$	36,810	$	24,472	$	542,824
October 31, 2024	$	237,346	$	216,408	$	27,539	$	23,639	$	504,932

(1)

Excludes securitization exposures, and exposures under the SA. Substantially all of our retail exposures under the AIRB approach are based in Canada.

(2)

Classification by country is primarily based on domicile of debtor or customer.

Business and government exposure by industry groups

The following table provides an industry-wide breakdown of our business and government exposures under the IRB approach, net of collateral held for repo-style transactions.


			Undrawn		Repo-style		Other off-		OTC		2025		2024
$ millions, as at October 31	Drawn		commitments		transactions		balance sheet		derivatives		Total		Total
Commercial mortgages	$	9,074	$	17	$	–	$	–	$	–	$	9,091	$	7,832
Financial institutions		103,109		13,497		24,028		6,875		13,079		160,588		142,612
Retail and wholesale		13,500		4,411		–		542		354		18,807		17,844
Business services		14,084		4,079		57		1,126		351		19,697		19,299
Manufacturing – capital goods		6,558		2,963		–		494		303		10,318		8,858
Manufacturing – consumer goods		7,184		2,074		–		234		175		9,667		9,281
Real estate and construction		55,825		10,053		–		2,333		627		68,838		65,926
Agriculture		8,938		1,489		–		74		130		10,631		9,934
Oil and gas		2,420		3,580		–		480		1,160		7,640		6,822
Mining		2,059		1,360		–		798		1,375		5,592		4,901
Forest products		722		553		–		169		32		1,476		1,114
Hardware and software		6,050		2,644		114		162		349		9,319		7,382
Telecommunications and cable		3,694		746		–		258		437		5,135		3,896
Publishing, printing and broadcasting		492		118		–		11		19		640		859
Transportation		7,470		3,764		–		498		521		12,253		11,664
Utilities		17,524		9,250		–		5,238		1,643		33,655		30,628
Education, health and social services		10,540		1,827		3		281		153		12,804		12,535
Governments		137,162		5,504		1,380		521		2,106		146,673		143,545
Total	$	406,405	$	67,929	$	25,582	$	20,094	$	22,814	$	542,824	$	504,932

Policies

We have comprehensive policies for the management of market risk. These policies are related to the identification and measurement of various types of market risk, their inclusion in the trading portfolio, and the establishment of limits within which we monitor, manage and report our overall exposures. Our policies also outline the requirements for the construction of valuation models, model review and validation, independent checking of the valuation of positions, the establishment of valuation adjustments, and alignment with accounting policies including MTM and

mark-to-model

methodologies. Under the Basel III reforms for market risk, commonly known as the FRTB, we have our Risk Trading Book / Banking Book Boundary Procedures and Internal Risk Transfer Trading Procedures, which govern the classification of trading activity and set restrictions on trades crossing the trading book banking book boundary. There are currently no deviations from the presumptive list of instrument classifications, and over the past year, there have been no trading desks that have crossed the boundary.

Trading desk strategies, including hedging strategies, are part of the trading desks operating model and included in each desk’s policies and procedures. The use of VaR, stress testing, and profit and loss monitoring also help identify and monitor the effectiveness of their trading strategies, including hedging performance, and fall under the Trading Credit Risk and Market Risk Management Policies and their supporting standards.

Market risk limits

We have risk tolerance levels, expressed in terms of statistically based VaR measures, potential stress losses, and notional or other limits as appropriate. We use a multi-tiered approach to set limits on the amounts of risk that we can assume in our trading and

non-trading

activities, as follows:

•

Board limits control consolidated market risk;

•

Management limits control market risk for CIBC overall and are lower than the Board limits to allow for a buffer in the event of extreme market moves and/or extraordinary client needs;

•

Tier 2 limits control market risk at the business unit level; and

•

Tier 3 limits control market risk at the

sub-business

unit or desk level.

Management limits are established by the CRO, consistent with the risk appetite statement approved by the Board. Tier 2 and Tier 3 limits are approved at levels of management commensurate with the risk assumed.

Process and control

Market risk exposures are monitored daily against approved risk limits, and processes are in place to monitor that only authorized activities are undertaken. We generate daily risk and limit-monitoring reports including intraday limit monitoring for active trading desks, based on the previous day’s positions. Summary market risk and limit compliance reports are produced and reviewed periodically with the GRC and RMC.

Risk measurement

We use the following measures for market risk:

•

VaR enables the meaningful estimation of potential for losses in different businesses and asset classes. VaR is determined by the coherent modelling of VaR for each of interest rate, credit spread, equity, foreign exchange, and commodity, along with the portfolio effect arising from the interrelationship of the different risks (diversification effect):

•

Interest rate risk measures the impact of changes in interest rates and volatilities on cash instruments and derivatives.

•

Credit spread risk measures the impact of changes in credit spreads of provincial, municipal and agency bonds, sovereign bonds, corporate bonds, securitized products, and credit derivatives such as credit default swaps.

•

Equity risk measures the impact of changes in equity prices and volatilities.

•

Foreign exchange risk measures the impact of changes in foreign exchange rates and volatilities.

•

Commodity risk measures the impact of changes in commodity prices and volatilities, including the basis between related commodities.

•

Diversification effect reflects the risk reduction achieved across various financial instrument types, asset class, currencies, and regions. The extent of the diversification benefit depends on the correlation between the assets and risk factors in the portfolio at a particular time.

The VaR table below presents market risks by type of risk and in aggregate. The risks are interrelated and the diversification effect reflects the reduction of risk due to portfolio effects among the trading positions. Our trading risk exposures to interest rates and credit spreads arise from activities in the global debt and derivative markets, particularly from transactions in the Canadian, U.S. and European markets. The primary instruments are government and corporate debt, and interest rate derivatives. The majority of the trading exposure to foreign exchange risk arises from transactions involving the Canadian dollar, U.S. dollar, Euro, Pound sterling, Australian dollar, Chinese yuan and Japanese yen, whereas the primary risks of losses in equities are in the U.S., Canadian and European markets. Trading exposure to commodities arises primarily from transactions involving North American natural gas, crude oil products, and precious metals.


$ millions, as at or for the year ended October 31								2025										2024
	High		Low		As at			Average			High		Low		As at			Average
Interest rate risk	$	14.2	$	4.1	$	11.8		$	7.9		$	18.7	$	4.6	$	6.3		$	9.2
Credit spread risk		2.9		1.0		1.5			1.7			3.8		1.6		1.9			2.4
Equity risk		15.9		5.0		5.0			9.2			8.4		4.5		6.9			6.0
Foreign exchange risk		3.6		0.5		0.7			1.1			7.3		0.5		0.6			1.3
Commodity risk		9.0		1.1		2.5			3.3			5.2		1.2		1.2			2.8
Diversification effect (1)		n/m		n/m		(12.2	)		(11.8	)		n/m		n/m		(9.4	)		(10.7	)
Total VaR (one-day measure)	$	16.1	$	6.6	$	9.3		$	11.4		$	18.8	$	5.8	$	7.5		$	11.0

(1)

Total VaR is less than the sum of the VaR of the different market risk types resulting from a portfolio diversification effect.

n/m

Not meaningful. It is not meaningful to compute a diversification effect because the high and low may occur on different days for different risk types.

Stress testing and scenario analysis

Stress testing and scenario analysis are designed to add insight into possible outcomes of abnormal market conditions, and to highlight possible concentration of risk within our portfolio.

We measure portfolio valuations under a wide range of extreme moves in market risk factors. Our approach simulates the impact on earnings of extreme market events over varying time horizons. Furthermore, in most cases, the scenarios do not consider risk-mitigating actions to better reflect the reduced market liquidity that typically accompanies such events.

Scenarios are developed by utilizing historical market data sourced from periods of market disruption, or are based on hypothetical impacts of economic events, political events, and natural disasters as hypothesized by economists, business leaders, and risk managers.

Our hypothetical scenarios encompass potential market crises across geographies and are informed from current themes in geopolitics, central bank action and various other macro themes.

Stress testing scenarios are periodically reviewed and amended as necessary to ensure they remain relevant. Under stress limit monitoring, limits are placed on the maximum acceptable loss based on risk appetite in aggregate, at the detailed portfolio level, and for specific asset classes.

Non-trading

activities

Structural interest rate risk (SIRR)

SIRR primarily consists of the risk arising due to mismatches in the timing of the repricing of assets and liabilities, which do not arise from trading and trading-related businesses. The objective of SIRR management is to lock in product spreads and deliver stable and predictable net interest income over time, while managing the risk to the economic value of our assets arising from changes in interest rates.

SIRR results from differences in the maturities or repricing dates of assets and liabilities, both

on-

and

off-balance

sheet, as well as from embedded optionality in retail products, and other product features that could affect the expected timing of cash flows, such as options to

pre-pay

loans or redeem term deposits prior to contractual maturity. A number of assumptions affecting cash flows, product repricing and the administration of rates underlie the models used to measure SIRR. The key assumptions pertain to the expected funding profile of mortgage rate commitments, fixed rate loan prepayment behaviour, term deposit redemption behaviour, the treatment of

non-maturity

deposits and equity. Assumptions rely on empirical data, based on historical client behaviour, balance sheet composition and product pricing with the consideration of possible forward-looking changes. All models and assumptions used to measure SIRR are subject to independent oversight by Risk Management. A variety of cash instruments and derivatives, primarily interest rate swaps, are used to manage these risks.

The Board has oversight of the management of SIRR, approves the risk appetite and the associated SIRR risk limits. GALCO and its subcommittee, the Asset Liability Management Committee, regularly review structural market risk positions and provide senior management oversight.

In addition to Board-approved limits on earnings and economic value exposure, more granular management limits are in place to guide

day-to-day

management of this risk. The ALM group within Treasury is responsible for the ongoing modelling of structural market risk across the enterprise, with independent oversight and compliance with SIRR policy provided by Risk Management.

ALM activities are designed to manage the effects of potential interest rate movements while balancing the cost of any hedging activities on current net revenue. To monitor and control SIRR, two primary metrics, net interest income (NII) risk and economic value of equity (EVE) risk, are assessed, in addition to stress testing, gap analysis and other market risk metrics. The net interest income sensitivity is a measure of the impact of potential changes in interest rates on the projected

12-month

pre-tax

net interest income of the bank’s portfolio of assets, liabilities and

off-balance

sheet positions in response to prescribed parallel interest rate movements with interest rates floored at zero. The EVE sensitivity is a measure of the impact of potential changes in interest rates on the market value of the bank’s assets, liabilities and

off-balance

sheet positions in response to prescribed parallel interest rate movements with interest rates floored at zero.

The following table shows the potential

before-tax

impact of an immediate and sustained 100 basis point increase and 100 basis point decrease in interest rates on projected

12-month

NII and the EVE for our structural balance sheet, assuming no subsequent hedging management actions or changes in business mix or changes in product margins.

Structural interest rate sensitivity – measures


$ millions (pre-tax), as at October 31				2025									2024
	CAD (1)			USD			Total			CAD (1)			USD			Total
100 basis point increase in interest rates
Increase (decrease) in net interest income	$	137		$	26		$	163		$	159		$	45		$	204
Increase (decrease) in EVE		(1,168	)		(510	)		(1,678	)		(956	)		(400	)		(1,356	)
100 basis point decrease in interest rates
Increase (decrease) in net interest income		(220	)		(29	)		(249	)		(193	)		(49	)		(242	)
Increase (decrease) in EVE		1,025			500			1,525			829			408			1,237

(1)

Includes CAD and other currency exposures.

Foreign exchange risk

Structural foreign exchange risk primarily consists of the risk inherent in: (a) net investments in foreign operations (NIFO) due to changes in foreign exchange rates; and (b) foreign currency denominated RWA and foreign currency denominated capital deductions. This risk, predominantly in U.S. dollars, is managed using derivative hedges and by funding the investments in matching currencies. We actively manage this position to ensure that the potential impact on our capital ratios is within an acceptable tolerance in accordance with the policy approved by the CRO, while giving consideration to the impact on earnings and shareholders’ equity. Structural foreign exchange risk is managed by Treasury under the guidance of GALCO with monitoring and oversight by Risk Management.

A 1% appreciation of the Canadian dollar would reduce our shareholders’ equity as at October 31, 2025 by approximately $224 million (2024: $198 million) on an

after-tax

basis.

Our

non-functional

currency denominated earnings are converted into the functional currencies through spot or forward foreign exchange transactions. Typically, there is no significant impact of exchange rate fluctuations on our consolidated statement of income.

Derivatives held for ALM purposes

Where derivatives are held for ALM purposes, and when transactions meet the criteria specified under IFRS, we apply hedge accounting for the risks being hedged, as discussed in Notes 1, 12 and 13 to the consolidated financial statements. Derivative hedges that do not qualify for hedge accounting treatment are referred to as economic hedges and are recorded at fair value on the consolidated balance sheet with changes in fair value recognized in the consolidated statement of income.

Economic hedges for other than FVO financial instruments may lead to income volatility because the hedged items are recorded either on a cost or amortized cost basis or recorded at fair value on the consolidated balance sheet with changes in fair value recognized through other comprehensive income (OCI). This accounting income volatility may not be representative of the overall economic risk.

Equity risk

Non-trading

equity risk arises primarily in our strategy and corporate development activities and strategic investments portfolio. The investments comprise public and private equities, investments in limited partnerships, and equity-accounted investments.

The following table provides the amortized cost and fair values of our

non-trading

equities:


$ millions, as at October 31		Cost		Fair value
2025	Equity securities designated at FVOCI	$	979	$	1,020
	Equity-accounted investments in associates (1)		144		291
	Total	$	1,123	$	1,311
2024	Equity securities designated at FVOCI	$	653	$	672
	Equity-accounted investments in associates (1)		145		253
	Total	$	798	$	925

(1)

Excludes our equity-accounted joint ventures. See Note 24 to the consolidated financial statements for

further

details.

Policies

Our liquidity risk management policy establishes requirements that enable us to meet anticipated liquidity needs in both normal and stressed conditions by maintaining a sufficient amount of available unencumbered liquid assets and diversified funding sources. Branches and subsidiaries possessing unique liquidity characteristics, due to distinct businesses or jurisdictional requirements, maintain local liquidity practices in alignment with CIBC’s liquidity risk management policy.

Our pledging policy sets out consolidated limits for the pledging of CIBC’s assets across a broad range of financial activities. These limits ensure unencumbered liquid assets are available for liquidity purposes.

We maintain a detailed global contingency funding plan that sets out the strategies for addressing liquidity shortfalls in emergency and unexpected situations, and delineates the requirements necessary to manage a range of stress conditions, establishes lines of responsibility, articulates implementation, defines escalation procedures, and is aligned to CIBC’s risk appetite. In order to reflect CIBC’s organizational complexity, regional and subsidiary contingency funding plans are maintained to respond to liquidity stresses unique to the jurisdictions within which CIBC operates, and support CIBC as an enterprise.

Risk measurement

Our liquidity risk tolerance is defined by our risk appetite statement, which is approved annually by the Board, and forms the basis for the delegation of liquidity risk authority to senior management. We use both regulatory-driven and internally developed liquidity risk metrics to measure our liquidity risk exposure. Internally, our liquidity position is measured using the Liquidity Horizon, which combines contractual and behavioural cash flows to measure the future point in time when projected cumulative cash outflows exceed cash inflows under a combined CIBC-specific and market-wide stress scenario. Expected and potential anticipated inflows and outflows of funds generated from

on-

and

off-balance

sheet exposures are measured and monitored on a regular basis to ensure compliance with established limits. These cash flows incorporate both contractual and behavioural

on-

and

off-balance

sheet cash flows.

Our liquidity measurement system provides liquidity risk exposure reports that include the calculation of the internal liquidity stress tests and regulatory reporting such as the LCR, NSFR and net cumulative cash flow (NCCF). Our liquidity management also incorporates the monitoring of our unsecured wholesale funding position and funding capacity.

Risk appetite

CIBC’s risk appetite statement ensures prudent management of liquidity risk by outlining qualitative considerations and quantitative metrics including the LCR and Liquidity Horizon. Quantitative metrics are measured and managed to a set of limits approved by Risk Management.

Stress testing

A key component of our liquidity risk management, and complementing our assessments of liquidity risk exposure, is liquidity risk stress testing. Liquidity stress testing involves the application of name-specific and market-wide stress scenarios at varying levels of severity to assess the amount of available liquidity required to satisfy anticipated obligations as they come due. The scenarios model potential liquidity and funding requirements in the event of changes to unsecured wholesale funding and deposit

run-off,

contingent liquidity utilization, and liquid asset marketability.

Liquid assets

Available liquid assets include unencumbered cash and marketable securities from

on-

and

off-balance

sheet sources, that can be used to access funding in a timely fashion. Encumbered liquid assets, composed of assets pledged as collateral and those assets that are deemed restricted due to legal, operational, or other purposes, are not considered as sources of available liquidity when measuring liquidity risk. The asset mix is supported by concentration monitoring on issuers, tenors and product types to ensure that bank-wide liquid asset portfolios contain a mix of assets that have appropriate liquidity, including in times of stress.

Encumbered and unencumbered liquid assets from

on-

and

off-balance

sheet sources are summarized as follows:


$ millions, as at October 31		Bank owned liquid assets		Securities received as collateral		Total liquid assets		Encumbered liquid assets		Unencumbered liquid assets (1)
2025	Cash and deposits with banks	$	44,003	$	–	$	44,003	$	285	$	43,718
	Securities issued or guaranteed by sovereigns, central banks, and multilateral development banks		188,603		119,484		308,087		167,774		140,313
	Other debt securities		7,273		14,675		21,948		11,065		10,883
	Equities		72,778		44,189		116,967		76,927		40,040
	Canadian government guaranteed National Housing Act mortgage-backed securities		31,690		4,053		35,743		23,275		12,468
	Other liquid assets (2)		20,834		4,616		25,450		10,708		14,742
	Total	$	365,181	$	187,017	$	552,198	$	290,034	$	262,164
2024	Cash and deposits with banks	$	48,064	$	–	$	48,064	$	560	$	47,504
	Securities issued or guaranteed by sovereigns, central banks, and multilateral development banks		178,324		108,499		286,823		146,992		139,831
	Other debt securities		6,093		11,328		17,421		3,696		13,725
	Equities		58,102		33,424		91,526		54,269		37,257
	Canadian government guaranteed National Housing Act mortgage-backed securities		35,155		2,038		37,193		20,263		16,930
	Other liquid assets (2)		16,021		2,849		18,870		8,971		9,899
	Total	$	341,759	$	158,138	$	499,897	$	234,751	$	265,146

(1)

Unencumbered liquid assets are defined as

on-balance

sheet assets, assets borrowed or purchased under resale agreements, and other

off-balance

sheet collateral received less encumbered liquid assets.

(2)

Includes cash pledged as collateral for derivatives transactions, select ABS and

precious

metals.

Assets and liabilities

The following table provides the contractual maturity profile of our

on-balance

sheet assets, liabilities and equity at their carrying values. Contractual analysis is not representative of our liquidity risk exposure, however this information serves to inform our management of liquidity risk, and provide input when modelling a behavioural balance sheet.


$ millions, as at October 31, 2025	Less than 1 month		1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		No specified maturity			Total
Assets
Cash and non-interest-bearing deposits with banks (1)	$	12,379	$	–	$	–	$	–	$	–	$	–	$	–	$	–	$	–		$	12,379
Interest-bearing deposits with banks		31,624		–		–		–		–		–		–		–		–			31,624
Securities		15,132		7,574		6,635		6,602		6,755		34,882		73,820		55,038		76,797			283,235
Cash collateral on securities borrowed		21,697		–		–		–		–		–		–		–		–			21,697
Securities purchased under resale agreements		48,191		16,407		11,948		4,711		1,085		4,322		31		–		–			86,695
Loans
Residential mortgages		5,570		11,306		22,139		18,681		30,614		84,232		104,412		10,079		–			287,033
Personal		1,082		439		960		725		627		705		5,004		5,941		32,383			47,866
Credit card		453		906		1,360		1,360		1,360		5,438		10,704		–		–			21,581
Business and government (2)		5,092		9,057		13,280		17,994		13,736		55,665		87,796		22,994		11,802			237,416
Allowance for credit losses		–		–		–		–		–		–		–		–		(4,392	)		(4,392	)
Derivative instruments		1,112		7,349		3,399		2,167		1,829		7,110		8,807		6,579		–			38,352
Other assets		–		–		–		–		–		–		–		–		53,452			53,452
Total assets	$	142,332	$	53,038	$	59,721	$	52,240	$	56,006	$	192,354	$	290,574	$	100,631	$	170,042		$	1,116,938
October 31, 2024 (2)	$	130,008	$	45,680	$	57,993	$	52,094	$	61,184	$	186,218	$	260,975	$	101,546	$	146,287		$	1,041,985
Liabilities
Deposits (3)	$	43,722	$	36,883	$	61,945	$	54,413	$	47,718	$	48,626	$	70,730	$	27,856	$	416,231		$	808,124
Obligations related to securities sold short		24,244		–		–		–		–		–		–		–		–			24,244
Cash collateral on securities lent		6,031		–		–		–		–		–		–		–		–			6,031
Obligations related to securities sold under repurchase agreements		91,742		32,572		1,060		734		934		–		3,000		–		–			130,042
Derivative instruments		2,924		7,635		4,157		3,136		2,333		6,625		4,787		9,814		–			41,411
Other liabilities (2)		21		43		66		70		69		270		633		808		32,874			34,854
Subordinated indebtedness		–		–		–		–		–		–		33		7,786		–			7,819
Equity		–		–		–		–		–		–		–		–		64,413			64,413
Total liabilities and equity	$	168,684	$	77,133	$	67,228	$	58,353	$	51,054	$	55,521	$	79,183	$	46,264	$	513,518		$	1,116,938
October 31, 2024 (2)	$	188,502	$	48,833	$	75,616	$	49,168	$	46,158	$	55,388	$	73,705	$	39,445	$	465,170		$	1,041,985

(1)

Cash includes interest-bearing demand deposits with the Bank of Canada.

(2)

Includes customers’ liability under acceptances of $

million (2024: $6 million) in business and government loans and acceptances of $10 million (2024: $6 million) in other liabilities. Prior year amounts have been revised to conform to the presentation adopted in 2025.

(3)

Comprises $258.1 billion (2024: $252.9 billion) of personal deposits; $523.3 billion (2024: $492.0 billion) of business and government deposits and secured borrowings; and $26.7 billion (2024: $20.0 billion) of bank deposits.

Credit-related commitments

The following table provides the contractual maturity of notional amounts of credit-related commitments. Since a significant portion of commitments are expected to expire without being drawn upon, the total of the contractual amounts is not representative of future liquidity requirements.


$ millions, as at October 31, 2025	Less than 1 month			1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		No specified maturity (1)		Total
Unutilized credit commitments	$	2,457		$	9,030	$	5,805	$	8,686	$	7,594	$	25,457	$	92,976	$	5,201	$	263,236	$	420,442
Standby and performance letters of credit		7,414			3,579		4,089		5,071		4,229		896		852		228		–		26,358
Backstop liquidity facilities		56			30,347		66		171		185		369		–		–		–		31,194
Documentary and commercial letters of credit		85			38		20		4		1		–		19		–		–		167
Other		2,667	(2)		–		–		–		–		–		–		–		55		2,722
Total	$	12,679		$	42,994	$	9,980	$	13,932	$	12,009	$	26,722	$	93,847	$	5,429	$	263,291	$	480,883
October 31, 2024	$	18,455		$	35,462	$	8,910	$	11,720	$	12,084	$	26,766	$	77,636	$	3,562	$	245,816	$	440,411

(1)

Includes $201.5 billion (2024: $189.6 billion) of personal, home equity and credit card lines, which are unconditionally cancellable at our discretion.

(2)

Includes forward-dated securities financing trades.

Other

off-balance

sheet contractual obligations

The following table provides the contractual maturities of other

off-balance

sheet contractual obligations affecting our funding needs:


$ millions, as at October 31, 2025	Less than 1 month		1–3 months		3–6 months		6–9 months		9–12 months		1–2 years		2–5 years		Over 5 years		Total
Purchase obligations (1)	$	149	$	241	$	270	$	275	$	232	$	566	$	741	$	229	$	2,703
Investment commitments		–		1		12		–		2		9		46		483		553
Future lease commitments (2)		1		4		6		6		7		35		93		421		573
Pension contributions (3)		15		30		45		45		45		–		–		–		180
Underwriting commitments		1,045		–		–		–		–		–		–		–		1,045
Total	$	1,210	$	276	$	333	$	326	$	286	$	610	$	880	$	1,133	$	5,054
October 31, 2024 (2)	$	607	$	263	$	292	$	321	$	279	$	737	$	850	$	1,203	$	4,552

(1)

Obligations that are legally binding agreements whereby we agree to purchase products or services with specific minimum or baseline quantities defined at fixed, minimum or variable prices over a specified period of time are defined as purchase obligations. Purchase obligations are included through to the termination date specified in the respective agreements, even if the contract is renewable. Many of the purchase agreements for goods and services include clauses that would allow us to cancel the agreement prior to expiration of the contract within a specific notice period. However, the amount above includes our obligations without regard to such termination clauses (unless actual notice of our intention to terminate the agreement has been communicated to the counterparty). The table excludes purchases of debt and equity instruments that settle within standard market time frames.

(2)

Excludes lease obligations that are accounted for under IFRS 16, which are recognized on the consolidated balance sheet, and operating and tax expenses relating to lease commitments. The table includes lease obligations that are not accounted for under IFRS 16, including those related to future starting lease commitments for which we have not yet recognized a lease liability and

right-of-use

asset.

(3)

Includes estimated minimum funding contributions for our funded defined benefit pension plans in Canada, the U.S., the U.K., and the Caribbean. Estimated minimum funding contributions are included only for the next annual period as the minimum contributions are affected by various factors, such as market performance and regulatory requirements, and are therefore subject to significant variability.

Reputation and legal risks

Our reputation and financial soundness are of fundamental importance to us and to our clients, shareholders, third parties, regulators, team members and communities.

Reputation risk is the risk of negative publicity regarding our business conduct or practices which, whether true or not, could significantly harm our reputation as a leading financial institution, or could materially and adversely affect our business, operations or financial condition.

Legal risk is the risk of financial loss arising from one or more of the following factors: (a) civil, criminal or regulatory enforcement proceedings against us; (b) our failure to correctly document, enforce or comply with contractual obligations; (c) failure to comply with our legal obligations to clients, investors, team members, counterparties or other stakeholders; (d) failure to take appropriate legal measures to protect our assets or security interests; or (e) misconduct by our team members or agents.

All team members at CIBC play an important role in protecting our reputation by ensuring that the highest ethical standards are followed in how we act and what we do. Not only must we act with integrity at all times, we must also ensure that activities being conducted do not pose undue risks to CIBC’s reputation for ethical, sound and responsible business practices. As a result, requirements for the management and oversight of potential reputation risk are integrated throughout our framework of policies and related procedures. These processes include the management of various risks as set out in CIBC’s Risk Appetite Statement, Risk Management Framework and Code of Conduct. Our Reputation Risk Management Framework, Global Reputation and Legal Risks Policy and business-specific procedures outline how we safeguard our reputation through identification, assessment, escalation and mitigation of potential reputation and legal risks. Proactive management of potential reputation and legal risks is a key responsibility of CIBC and all our team members.

Overall governance and oversight of reputation risk is provided by the Board, primarily through the RMC of the Board. Senior management oversight of reputation and legal risks is provided by the Reputation and Legal Risks Committee, which is a subcommittee of GRC and reports its activities regularly to the GRC. Additionally, there are specific senior management committees across the enterprise that provide further oversight to ensure required practices are followed and any material reputation and legal risks are identified, managed, and if required, escalated, effectively.

Conduct and culture risk

Conduct risk is the risk that the actions or omissions (i.e., behaviour) of CIBC, team members or third parties: do not align with our desired culture; deliver poor, inappropriate or unfair outcomes for clients, team members or shareholders; result in adverse market practices and outcomes; impact CIBC’s reputation as a leading financial institution; or materially and adversely affect our business, operations or financial condition.

Culture risk is the risk that the implicit or explicit beliefs, values and norms guiding team members’ behaviours and decision-making could adversely affect CIBC’s strategy, reputation, business or financial condition.

Our Conduct and Culture Risk Framework applies enterprise-wide and outlines the proactive management and oversight of potential conduct and culture risk. Every team member is accountable for the identification and management of conduct and culture risk. The overarching principles and requirements for maintaining appropriate conduct, addressing inappropriate conduct and embedding CIBC’s desired culture are covered in CIBC’s Code and other global, regional and business specific policies, frameworks, processes and procedures. All team members must continually abide by the Code, and CIBC policies, frameworks, processes and procedures in carrying out the accountabilities of their role. Overall governance of conduct and culture risk is provided by the Board and its committees, including the CGC, as well as senior management committees.